Nifty ends lower after seven-week rally

New Delhi:  Despite ending higher on the second consecutive day on Friday, Nifty ended this week lower after a seven-week rally Deepak Jasani, Head Retail Research, HDFC Securities.

On a weekly basis, Nifty closed 0.5 per cent lower after making a large high-low candle. Nifty could face resistance early next week from the 21,492-21,553 band while 21,150 could offer support. Nifty could keep witnessing sell on rise pattern for the next few days, he said.

Nifty ended higher for the second straight session on December 22.

At close, Nifty was up 0.44 per cent or 94.34 points at 21,349.4. Cash market volumes on the NSE were lower at Rs 0.93 lakh crores. Broad market indices rose more than the Nifty even as the advance-decline ratio remained firm at 2.33:1. BFSI, IT, PSU, and Metal stocks remained in focus, he said.

Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities said the Nifty has retraced a good portion of the losses seen on Wednesday. The short-term trend nevertheless remains down. Momentum readings like the 14-day RSI too remain in decline mode after declining sharply from overbought levels on Wednesday. This calls for caution in the near term.

Nifty would need to cross the recent highs of 21,593 to reverse the current downtrend. Crucial supports to watch for re-emergence of weakness are at 21,232, he said.